Emirates NBD boosts Dubai, Saudi falls after budget

Dubai stock market rebounded on Wednesday as top bank Emirates NBD surged, while falling oil prices continued to weigh on other Gulf markets and Saudi Arabia dropped after the government announced its 2019 budget.

In Dubai, the index rose 1.0 percent in early trade after falling 2.1 percent in the last session. The index is the worst-performing in the Middle East and North Africa this year, down more than 25 percent and near its lowest levels since 2013.

Valuations are attractive but there is no rush for investors to build positions, said Vrajesh Bhandari, portfolio manager at Al Mal Capital in Dubai. However, some flows may be going into high-yielding stocks ahead of the annual dividend announcement season early next year, he added.

The state budget promised a 7 percent spending rise next year in an effort to spur sluggish economic growth, but that figure had already been flagged in a pre-budget announcement at the end of September.

Also, Saudi officials said they had no intention of changing plans to raise fees for expatriate workers this year, and indicated that domestic fuel price hikes might occur under a long-term subsidy reform policy. Hikes in both areas could hurt companies, and the private sector had lobbied for the expat fee rises to be delayed.

Amwal Al Ghad English is a momentum website located in Cairo determined to cover various economic activities in banking, insurance, investment, real estate, construction, trade, and technology sectors. It aspires to remain the standard-setter for international journalism, by preserving accuracy, impartiality, and independence. The English website works on providing its readers with reliable and unbiased information of relevance, range, and depth.